Wood Mackenzie released a report titled ‘Europe solar PV outlook 2019’ which says that Europe is likely to see a boon in its solar installation in the next 4-5 years.
Solar projects now regularly beat the onshore wind in competitive auctions in Germany, one of the world’s most mature wind markets. France has rebounded and is now seen as the most attractive place to build solar in Europe. Meanwhile, long-dormant Spain has rapidly transformed into a globally significant solar market, as well as a new hot spot for corporate renewables deals.
Germany and Spain lead European solar PV installations between 2019 and 2024
According to the report, Germany is likely to install 21 GW of new solar power capacity between 2019 and 2024, with Spain following closely with nearly 20 GW of majorly utility-scale power capacity. These countries are expected to lead as the largest PV markets in Europe as the region is expected to double its new installations over the next 3 years to around 20 GW annually. At least 5 GW will be installed by 7 European nations during this period with another 18 installing more than 1 GW solar.
And unlike the days when installations were driven by politically vulnerable subsidies, the market is increasingly centered around competitive auctions and subsidy-free projects. As the market matures and moves from feed-in-tariffs (FIT) to competitive auctions, European Union (EU) guidelines on state aid for renewable energy encourage technology-neutral tenders that pits solar against other renewables. At the end of 2018, 24 GW of solar PV capacity was awarded and another 47 GW was confirmed across more than a dozen markets.
Read: Coal addiction. Only 8 EU Nations Pledge To Phase it out by 2030
Within the next 5 years, the report sees FITs and subsidies withdrawn from several markets in the continent ‘creating pressure on profitability and cost’.
Another important factor to watch out for is the growth of distributed solar generation for self-consumption which is likely to account for nearly 40% of capacity installed from 2019 to 2024. “As government support is scaled back, it will be necessary to increase rates of self-consumption in order to make investments stack up. Pairing solar with battery storage will become more commonplace,” said Senior Analyst with Wood Mackenzie Tom Heggarty.
[related_post]
Other insights:
In 2018, Europe installed 11.3 GW of new solar PV capacity growing 21% annually, according to SolarPower Europe’s Global Market Outlook. It expects 20.4 GW of new installations in 2019 and 24.1 GW in 2020 in the medium scenario. The Latest Wood Mac forecasts are in line with another report by Solar Power Europe’s Global Market Outlook which was published in May, where the European solar lobby association forecasted that Europe will grow from 126 to 255 GW by end of 2023.
The Indian Institute of Technology (Indian School of Mines), Dhanbad, has signed an MoU with…
Kotyark Industries Limited has announced that it has been awarded a tender to supply 48,381…
In a key development, Hydrogen Europe and the Green Hydrogen Association (GH2 India) have signed…
Energy transition players Abraxas Power Corp and EDF Group have collaborated to jointly develop the…
The state owned NTPC has launched an eco-friendly and affordable housing solution called ‘Sukh’ Eco-house,…
Tecnimont has announced that its Indian subsidiary, Tecnimont Private Limited (TCMPL), has partnered with Paradeep…